Bitbank declares war on Polymarket: account blocking for transactions with prediction markets
Japanese cryptocurrency exchange Bitbank has introduced strict measures against its clients found to be involved in operations with prediction market platforms, particularly Polymarket. Starting June 15, the company officially warned users about the risk of full account suspension. This decision was made not under direct regulatory instruction, but as part of internal compliance control and efforts to align with local gambling laws.
Bitbank made it clear: trading outcomes of future events, whether elections or sports matches, through services like Polymarket may be considered illegal gambling activity. Even if these platforms are registered outside Japan, accessing them from within the country for financial gain carries serious legal risks.
What the user loses upon blocking
The consequences for violators will be extremely severe. Upon confirmation of funds being deposited or withdrawn from such platforms, Bitbank will immediately block the account. The user loses access to all functions: login, deposit and withdrawal of crypto assets, withdrawal of Japanese yen, and trading. Notably, the exchange disclaims any responsibility for potential financial losses the client may incur as a result of these measures.
Japan and Polymarket: a complicated relationship
Significantly, Polymarket itself has long classified Japan as a restricted-access jurisdiction in its documentation. Although the restrictions mainly apply to the user interface rather than the API, this does not stop the exchange from taking extra precautions. Against this backdrop, May reports that Polymarket was exploring entry into the Japanese market, hoping to secure regulatory approval by 2030, appear particularly interesting. Clearly, strict local regulations make these plans extremely ambitious.
Global trend of tightening the screws
Bitbank's actions are not an isolated case but part of a global trend. Earlier this year, the Portuguese regulator demanded that Polymarket cease operations after betting volumes on local elections exceeded €103 million. In the spring, Spain and Indonesia joined in blocking the platform, citing a lack of gambling licenses.
Expert opinion: Bitbank's decision is not just about compliance with laws but a clear signal to the market. As regulators worldwide begin to scrutinize DeFi platforms and prediction markets more closely, centralized exchanges are forced to take the toughest stance to avoid their own risks. For users, this means the era of carefree trading on Polymarket through Japanese exchanges is coming to an end, and attempts to bypass blocks could cost them access to all their funds.